Beginning inventory, purchases, and sales for WCS12 are as follows:Oct.Inventory300 units at $8Sale13175 unitsPurchase375 units at $1022280 unitsSale29Assuming a perpetual inventory system and using the weighted average method, deter-mine (a) the weighted average unit cost after the October 22 purchase, (b) the cost ofthe merchandise sold on October 29, and (c) the inventory on October 31.

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Asked Dec 13, 2019
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Beginning inventory, purchases, and sales for WCS12 are as follows:
Oct.
Inventory
300 units at $8
Sale
13
175 units
Purchase
375 units at $10
22
280 units
Sale
29
Assuming a perpetual inventory system and using the weighted average method, deter-
mine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of
the merchandise sold on October 29, and (c) the inventory on October 31.
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Beginning inventory, purchases, and sales for WCS12 are as follows: Oct. Inventory 300 units at $8 Sale 13 175 units Purchase 375 units at $10 22 280 units Sale 29 Assuming a perpetual inventory system and using the weighted average method, deter- mine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of the merchandise sold on October 29, and (c) the inventory on October 31.

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Expert Answer

Step 1

(a)

Calculate weighted average unit cost after October 22 purchases.

 

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Total cost of inventory in hand Weighted average unit cost = Total quantity S4,750 500 = S9.50

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Step 2

Working note:

 

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Weighted average method Unit Total cost of Quantity inventory in hand $8 cost 125 units $1,000 375 units $10 $3,750 500 units $4,750

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Step 3

(B &C)

Calculate the  cost of merchandise sold for each sale and...

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Weighted average method Purchases Cost of merchandise sold Inventory Unit Unit Total Total Unit Total Date Quantity Quantity Quantity cost cost cost cost cost cost 1-Oct $8 $2,400 $1,000 300 $8 $1,400 $8 13-Oct 175 125 22-Oct $10 $3,750 $9.50 $4,750 375 500 280 $9.50 29-Oct $2,660 $9.50 $2,090 220 $2,660 220 $2,090

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